The XRP ETF is expected to receive SEC approval by October 2025 following updated crypto ETP listing standards that improve market efficiency and reduce legal obstacles.
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SEC’s new rules allow in-kind redemption for crypto ETFs, enabling use of actual cryptocurrencies for share creation and redemption.
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Altcoins like XRP, Solana, and Dogecoin meet the SEC’s updated futures trading criteria, making their ETFs eligible for approval.
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Legal progress in Ripple’s litigation with the SEC may accelerate ETF approvals from Bitwise and Franklin Templeton.
XRP ETF approval is anticipated by October as SEC updates crypto ETP standards; stay informed with COINOTAG’s expert crypto news coverage.
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Bloomberg’s Eric Balchunas forecasts an 85% chance of XRP ETF approval by October 2025, driven by SEC’s revised crypto listing rules.
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The SEC’s adoption of in-kind redemption enhances ETF market efficiency and lowers operational costs for issuers.
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Pending XRP ETF applications from Bitwise and Franklin Templeton could see faster approval amid easing regulatory challenges.
Stay updated on XRP ETF developments and SEC crypto regulations with COINOTAG’s authoritative insights and analysis.
What Are the New SEC Crypto ETP Listing Standards?
The SEC’s updated crypto ETP listing standards require digital assets to have at least six months of futures trading on regulated platforms. This change targets assets like XRP, Solana, and Dogecoin, which meet these criteria, making their ETFs eligible for approval under the new framework. The standards also introduce in-kind redemption, allowing ETF issuers to use actual cryptocurrencies for share creation and redemption, improving market efficiency and reducing costs.
How Does In-Kind Redemption Benefit Crypto ETFs?
In-kind redemption enables ETF issuers to exchange shares for the underlying cryptocurrencies instead of cash. This process lowers transaction costs and minimizes market impact. Crypto attorney Bill Morgan highlights that this mechanism enhances liquidity and operational efficiency, making ETFs more attractive to investors. The SEC’s adoption of this practice marks a significant step toward mainstream acceptance of crypto ETFs.
When Is XRP ETF Approval Expected?
According to Bloomberg analyst Eric Balchunas, the most realistic timeline for XRP ETF approval is September or October 2025. His team assigns an 85% probability to this outcome, citing the SEC’s revised listing standards and improved crypto ETP rules. These developments suggest that multiple altcoin ETFs, including XRP, could gain regulatory clearance by early fall.
What Legal Factors Affect XRP ETF Approval?
Ripple’s ongoing litigation with the SEC remains a critical factor. However, former SEC attorney Marc Fagel indicates that both parties may dismiss appeals by the August 15 status report deadline. This would remove a major regulatory hurdle, potentially accelerating approval of XRP ETF proposals from Bitwise and Franklin Templeton. Market participants are closely monitoring these legal developments as they influence the ETF rollout timeline.
| ETF Proposal | Current Status | Expected Approval Timeline |
|---|---|---|
| XRP ETF (Bitwise) | Under SEC review | September – October 2025 |
| XRP ETF (Franklin Templeton) | Review extended, possible acceleration | Fall 2025 |
Frequently Asked Questions
What is the significance of SEC’s new crypto ETP listing standards?
The new standards require six months of futures trading on regulated exchanges for asset eligibility, improving transparency and investor protection for crypto ETFs.
How likely is XRP ETF approval this year?
Experts estimate an 85% chance of XRP ETF approval by October 2025, driven by regulatory updates and legal progress in Ripple’s case.
How to Prepare for XRP ETF Launch
- Monitor SEC announcements and regulatory updates closely.
- Review XRP ETF proposals and their legal status regularly.
- Stay informed on market readiness and platform integration plans.
Key Takeaways
- SEC’s updated crypto ETP standards enable altcoin ETFs like XRP to qualify through futures trading requirements.
- In-kind redemption adoption improves ETF efficiency by allowing cryptocurrency-based share transactions.
- Legal progress in Ripple’s case may accelerate XRP ETF approvals by fall 2025.
Conclusion
The SEC’s revised crypto ETP listing standards and in-kind redemption rules significantly enhance the prospects for XRP ETF approval by October 2025. With legal hurdles potentially clearing soon, altcoin ETFs are poised for regulatory acceptance, marking a pivotal moment in crypto investment products. Stay tuned to COINOTAG for ongoing expert coverage and analysis.
